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Bengaluru Real Estate sees resilient growth and promising future
Real Estate

Bengaluru Real Estate sees resilient growth and promising future

The real estate market in Bengaluru has shown remarkable resilience and sustained growth across different sectors over the past 25 years. Industry estimates indicate that before the pandemic, quarterly residential property sales consistently hovered around Rs 100 billion, with expectations of doubling in the upcoming quarter.

Irfan Razack, Chairman & Managing Director of Prestige Estates, highlighted the unique focus on quality development rather than just return on investment in Bengaluru. He emphasised that the city's market has remained robust even post-pandemic.

Over the last decade, Bengaluru has experienced growth in residential, commercial, and office spaces, making it a leader in these segments, according to industry leaders at an event organised by the Bangalore Realtors Association India (BRAI). JLL reported that residential sales in the first nine months of 2023 reached 91% of the annual sales in 2022, with Bengaluru contributing a substantial 22.9% share. In the office sector, the city continued to lead in net absorption, accounting for 23.7% in the year-to-date figures for 2023.

DK Shivakumar, Deputy Chief Minister of Karnataka, affirmed that Bengaluru remains the preferred choice for multinational companies establishing their offices in India. He assured government support for builders to expedite clearances. According to BRAI, rates in various segments have shown a growth of 35 to 65% over the past three years, with a 50% increase in residential property prices from 2021 to 2023.

Farook Mahmood, Managing Director of Silverline Realty and founder of BRAI, noted the impressive growth in the suburbs of Bengaluru, transforming them into self-contained mini-cities with comprehensive amenities. Younger residents are increasingly turning to these regions for home purchases.

Looking ahead, a combination of high demand from diverse buyer segments, attractive investment returns, and sustained interest from NRIs indicates that the Bengaluru real estate market will continue to thrive. Additionally, the consecutive fourth pause in the policy rate by the RBI is expected to positively impact residential sales, as financial institutions will maintain home loan interest rates at current levels.

The real estate market in Bengaluru has shown remarkable resilience and sustained growth across different sectors over the past 25 years. Industry estimates indicate that before the pandemic, quarterly residential property sales consistently hovered around Rs 100 billion, with expectations of doubling in the upcoming quarter. Irfan Razack, Chairman & Managing Director of Prestige Estates, highlighted the unique focus on quality development rather than just return on investment in Bengaluru. He emphasised that the city's market has remained robust even post-pandemic. Over the last decade, Bengaluru has experienced growth in residential, commercial, and office spaces, making it a leader in these segments, according to industry leaders at an event organised by the Bangalore Realtors Association India (BRAI). JLL reported that residential sales in the first nine months of 2023 reached 91% of the annual sales in 2022, with Bengaluru contributing a substantial 22.9% share. In the office sector, the city continued to lead in net absorption, accounting for 23.7% in the year-to-date figures for 2023. DK Shivakumar, Deputy Chief Minister of Karnataka, affirmed that Bengaluru remains the preferred choice for multinational companies establishing their offices in India. He assured government support for builders to expedite clearances. According to BRAI, rates in various segments have shown a growth of 35 to 65% over the past three years, with a 50% increase in residential property prices from 2021 to 2023. Farook Mahmood, Managing Director of Silverline Realty and founder of BRAI, noted the impressive growth in the suburbs of Bengaluru, transforming them into self-contained mini-cities with comprehensive amenities. Younger residents are increasingly turning to these regions for home purchases. Looking ahead, a combination of high demand from diverse buyer segments, attractive investment returns, and sustained interest from NRIs indicates that the Bengaluru real estate market will continue to thrive. Additionally, the consecutive fourth pause in the policy rate by the RBI is expected to positively impact residential sales, as financial institutions will maintain home loan interest rates at current levels.

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